Department of Education awards $61.5M contract to Educational Testing Service for National Assessment of Educational Progress analysis

Contract Overview

Contract Amount: $61,523,041 ($61.5M)

Contractor: Educational Testing Service

Awarding Agency: Department of Education

Start Date: 2004-12-16

End Date: 2008-03-31

Contract Duration: 1,201 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: ALLIANCE COORDINATION AND DESIGN, ANALYSIS & REPORTING FOR THE NATIONAL ASSESMENT OF EDUCATIONAL PROGRESS

Place of Performance

Location: NEW JERSEY

State: New Jersey Government Spending

Plain-Language Summary

Department of Education obligated $61.5 million to EDUCATIONAL TESTING SERVICE for work described as: ALLIANCE COORDINATION AND DESIGN, ANALYSIS & REPORTING FOR THE NATIONAL ASSESMENT OF EDUCATIONAL PROGRESS Key points: 1. Contract focuses on vital educational assessment data, providing insights into student performance. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Educational Testing Service has a long history with NAEP, indicating potential performance stability. 4. The contract duration of 1201 days suggests a significant, ongoing need for these services. 5. The Research and Development in Social Sciences and Humanities NAICS code points to specialized analytical work. 6. The contract type (Cost Plus Award Fee) allows for performance-based incentives. 7. The geographic location of the contractor in New Jersey may have local economic implications.

Value Assessment

Rating: good

The contract value of $61.5 million over approximately 3.3 years for comprehensive educational assessment analysis appears reasonable given the scope. While direct comparisons are difficult without more granular data on similar large-scale educational research contracts, the pricing structure (Cost Plus Award Fee) allows for adjustments based on performance. The contractor, Educational Testing Service, is a well-established entity in this field, suggesting a degree of established efficiency and expertise that could contribute to value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This competitive process is generally expected to drive more favorable pricing and ensure the government selects the most capable offeror. The specific number of bidders is not provided, but the designation suggests a healthy market for these specialized research and analysis services.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive environment that can lead to cost savings and ensure the government receives the best value for its investment in critical educational data analysis.

Public Impact

Students nationwide benefit from the insights generated by the National Assessment of Educational Progress, informing educational policies and practices. Educators and policymakers gain access to crucial data on student achievement and learning trends. The contract supports the delivery of analytical reports and research findings that guide educational improvement efforts. The workforce involved in conducting this analysis includes researchers, statisticians, and data analysts, primarily within Educational Testing Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure, while incentivizing performance, can sometimes lead to higher overall costs if award fees are consistently maximized without strict cost controls.
The long duration of the contract could present risks if educational assessment needs or methodologies change significantly during its term.
Reliance on a single contractor for such a critical national assessment may raise concerns about long-term market diversity in this specialized area.

Positive Signals

The award to Educational Testing Service, a recognized leader in educational measurement, suggests a high likelihood of successful execution and reliable data analysis.
The use of full and open competition indicates a commitment to obtaining the best possible services and pricing through a transparent process.
The contract's focus on the National Assessment of Educational Progress ensures continued support for a vital national resource for educational accountability.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically focusing on educational assessment and analysis. The market for educational testing and research services is substantial, with numerous organizations specializing in psychometrics, data analysis, and large-scale assessment administration. The National Assessment of Educational Progress (NAEP) is a flagship program, and contracts supporting its operation and analysis represent significant, albeit specialized, spending within this sector. Benchmarks for similar large-scale educational research contracts would typically involve multi-million dollar figures over several years, reflecting the complexity and importance of the work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Educational Testing Service, is likely a large business. There is no explicit information provided regarding subcontracting plans or requirements for small business participation. This suggests that the direct impact on the small business ecosystem may be limited unless ETS actively engages small businesses as subcontractors for specific components of the work.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers responsible for the National Assessment of Educational Progress. The Cost Plus Award Fee (CPA) structure implies performance metrics that would be monitored to determine award fees. Transparency is generally facilitated through contract awards databases, but detailed performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Assessment of Educational Progress (NAEP)
Educational Research and Evaluation Services
Federal Education Data Collection and Analysis
Social Science Research Contracts

Risk Flags

Potential for cost overruns under CPA structure if not tightly managed.
Risk of performance falling short of award fee criteria.
Dependence on a single contractor for critical national assessment data.
Need for robust government oversight to ensure value and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $61.5 million to EDUCATIONAL TESTING SERVICE. ALLIANCE COORDINATION AND DESIGN, ANALYSIS & REPORTING FOR THE NATIONAL ASSESMENT OF EDUCATIONAL PROGRESS

Who is the contractor on this award?

The obligated recipient is EDUCATIONAL TESTING SERVICE.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $61.5 million.

What is the period of performance?

Start: 2004-12-16. End: 2008-03-31.

What is Educational Testing Service's track record with the National Assessment of Educational Progress (NAEP)?

Educational Testing Service (ETS) has a long and established history of involvement with the National Assessment of Educational Progress (NAEP). They have been a primary contractor for various aspects of NAEP, including test development, administration, scoring, and analysis, for many years. This extensive experience suggests a deep understanding of NAEP's methodologies, requirements, and the complexities involved in large-scale national assessments. Their continued selection for significant NAEP contracts indicates a perceived reliability and capability in delivering the necessary services to maintain and analyze this critical educational data.

How does the $61.5 million contract value compare to previous NAEP analysis contracts?

Comparing the $61.5 million contract value directly to previous NAEP analysis contracts requires access to historical award data. However, given that NAEP is a large, ongoing national assessment program, contracts for its analysis and reporting are typically substantial. The duration of this contract (1201 days, approximately 3.3 years) suggests a significant scope of work. Historically, major federal research and assessment contracts often run into tens of millions of dollars over multiple years. Without specific historical figures for comparable analysis-only contracts, it's reasonable to infer that this award is in line with the scale expected for supporting a program as significant as NAEP.

What are the primary risks associated with this Cost Plus Award Fee (CPA) contract?

The primary risks associated with a Cost Plus Award Fee (CPA) contract like this one revolve around cost control and performance definition. While the CPA structure incentivizes the contractor (Educational Testing Service) to perform well by offering award fees based on achieving specific criteria, there's a risk that costs could escalate if the base cost plus maximum award fee exceeds initial projections or budgeted amounts. Defining clear, measurable, and achievable performance objectives is crucial; ambiguity can lead to disputes or the contractor receiving fees for less-than-optimal outcomes. Additionally, ensuring that the government effectively monitors costs and performance to justify award fees is a key oversight challenge.

How effective is the full and open competition process in ensuring value for this type of specialized research?

The full and open competition process is generally considered effective in ensuring value for specialized research contracts by fostering a competitive environment. It allows multiple qualified entities, such as Educational Testing Service and potentially others in the educational research and assessment field, to bid on the contract. This competition encourages offerors to propose their best technical solutions and pricing strategies to win the award. The government can then evaluate proposals not just on cost but also on technical merit, past performance, and other factors, aiming to select the offer that provides the best overall value. While the specific number of bidders isn't detailed here, the process itself is a strong indicator of an effort to achieve competitive pricing and quality.

What are the potential implications of this contract on future educational policy and practice?

This contract is crucial for the continued operation and analysis of the National Assessment of Educational Progress (NAEP), often referred to as 'The Nation's Report Card.' The data and insights generated from NAEP analyses directly inform educational policy and practice at federal, state, and local levels. Policymakers use NAEP results to understand trends in student achievement, identify areas needing improvement, and evaluate the effectiveness of educational reforms. Educators use the findings to benchmark their own performance and adapt teaching strategies. Therefore, the effective execution of this contract by Educational Testing Service has significant implications for evidence-based decision-making across the entire U.S. education system.

How does the NAICS code 541720 (Research and Development in the Social Sciences and Humanities) apply to this contract?

The NAICS code 541720 accurately reflects the nature of this contract, which involves 'Research and Development in the Social Sciences and Humanities.' Specifically, the work performed by Educational Testing Service for the National Assessment of Educational Progress (NAEP) falls squarely within this category. It entails conducting research related to educational outcomes, developing methodologies for assessment, analyzing complex social and educational data, and producing reports that contribute to the body of knowledge in the social sciences, particularly in education. This code signifies that the contract is for specialized intellectual work focused on understanding and improving societal aspects, rather than physical goods or standard services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: RESEARCH AND DEVELOPMENT › Education, Training, Employment, and Social Services R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: ROSEDALE ROAD, PRINCETON, NJ, 12

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $661,913,282

Exercised Options: $661,913,282

Current Obligation: $61,523,041

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline